Shares of the Bengaluru-based Azim Premji-promoted software services company- Wipro Ltd. rose as much as 4.65 per cent to Rs 285.40 on the BSE after it went ex-bonus in the ratio of one bonus share for every three shares held. On the National Stock Exchange, the stock climbed as much as 4.2 per cent to Rs 285.90. The board of directors of Wipro had on January 18 approved bonus issue of shares in ratio of one share for every three shares held.
Indian IT companies off late have been rewarding their shareholders by offering share buybacks, dividends and bonus issues as they sit on excess cash, analysts said.
On January 11, the country's second largest software services exporter Infosys' board approved the buyback of shares worth Rs 8,260 crore and Tata Consultancy Services, the country's largest IT company, had announced an interim dividend of Rs 4 per share when it announced its December quarter earnings in January.
In December quarter, Wipro had forecast a small rise in revenue growth from IT services for the quarter to March after beating third quarter profit estimates. Although factors such as Brexit, rising trade war concerns and the healthcare act could create tension for firms globally, a weaker rupee has been beneficial for the country's IT sector.
Wipro's net profit jumped 30 per cent to Rs 2,510 crore in the three months to December 31, beating analysts' average estimate of Rs 2,325 crore, according to Refinitiv Eikon data.
In today's trade, Wipro shares were witnessing heavy trading volumes as 7.55 lakh shares changed hands on the BSE compared with an average of 2.61 lakh shares traded daily in the past two weeks.
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